Financial Development and Growth in Direct Firm-Level Comparisons

Stepan Jurajda and Jan Bena

No 6395, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: The establishment of the EU-15 `single market' in 1993 brought about a high degree of similarity in firms' growth opportunities across countries, while substantial diversity existed in the development of national financial markets. We compare within-industry growth rates of similar `single-market' firms facing financial systems of different depth and institutional quality as of 1993. Moving from the least to the most developed financial market within the EU-15 boosts firms' annual value-added growth by about three percentage points. Our results also suggest that the growth gap due to initially under-developed financial systems was closed by 2003.

Keywords: Access to financial markets; Corporate growth; Financial development (search for similar items in EconPapers)
JEL-codes: F36 G15 G21 O16 O52 (search for similar items in EconPapers)
Date: 2007-07
New Economics Papers: this item is included in nep-cfn and nep-fdg
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP6395 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Financial Development and Growth in Direct Firm-Level Comparisons (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:6395

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP6395

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().